The auto industry is concerned about the global shortage of containers

Mumbai, Ta. 24 December 2020, Thursday

Concerns are being raised that the global shortage of containers will disrupt the supply of parts for the country's auto manufacturers in the next three to four months and affect production.

Shipping fares have been on the rise since July and it has become almost difficult for companies to do business, sources in the Society of Indian Automobile Manufacturers (SIAM) said.

India is the fifth largest auto market in the world. The shortage of containers has become a concern for the industry as the auto sector was on the verge of recovery after the coronavirus lockdown was eased.

Exports of goods from India have increased but imports have not increased as much, leading to inequality in the availability of containers, leading to shortages, said a spokesperson for a logistics company. "We have to import empty containers from the Middle East due to low imports," he claimed.

It is also being transported from one place to another within the country where there is a high demand for containers. Container availability is expected to return to normal in the first six months of 2021. This burden is falling on exporters as importers are unwilling to bear the increase in container fares which is affecting their margins.